ESP�RITO SANTO FINANCIAL GROUP S.A. ANNOUNCES 2003 FIRST QUARTER RESULTS OF ITS
                            INSURANCE SUBSIDIARIES                             

Esp�rito Santo Financial Group S.A. ("ESFG") (Euronext Lisbon and NYSE: ESF)
announced today the non-audited results of its insurance subsidiaries in
Portugal (Tranquilidade Group) for the first quarter of 2003.

ESFG's insurance results in this period show a significant recovery resulting
mostly from restructuring initiatives carried out both in the life and non-life
activities, combined with active management of the risk and investment
portfolios.

At Companhia de Seguros Tranquilidade ("Tranquilidade"), the non-life company,
2003 first quarter profits were 12.0 million Euros against a loss of 8.8
million Euros in the same period of 2002. This result reflects Tranquilidade's
return to profitability after the losses incurred in the course of 2001. The
principal factor which contributed to this recovery was a significant
improvement in technical margins.

This derives from the implementation of the restructuring plan initiated in
2001, and follows up on the encouraging signs already detected at year end
2002. A 45.0% increase in the technical margin before reinsurance and a 227.9%
increase in the technical margin after re-insurance in the first quarter of
2003, compared with the same period last year, demonstrates the success of the
increased selectivity introduced in the portfolio (total premiums declined
1.6%). This allowed the claims ratio after reinsurance to decline from 83.5% to
59.5%. A 1.9% reduction in costs was also a positive factor in Tranquilidade's
first quarter results.

The results at Companhia de Seguros Tranquilidade Vida ("Tranquilidade Vida"),
the life company, showed a profit of 5.3 million Euros in the first quarter of
2003, against a loss of 15.0 million Euros in the same period of 2002. During
the same period, premiums increased 24.8%, with particular emphasis on private
pension plans, where premiums grew 78.1%. A significant improvement in
financial results was a major contributor to Tranquilidade Vida's recovery at
the end of the first quarter 2003. These derive mostly form changes introduced
in Tranquilidade Vida's investment portfolio.

At Esp�rito Santo Seguros ("ESS"), the non-life bancassurance company, premiums
increased 31.6% in the first quarter of 2003 against the same period of the
previous year. However, claims increased by 37.7% in the same period, with
particular emphasis on the motor sector. As a result, 2003 first quarter
profits declined 10.3% against the profits shown in the first quarter of the
previous year.

16th April 2003



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